Options expiration occurs for most markets on the third Friday of the month. Because larger institutions may carry various options positions that require hedging, the expiration of options positions may lead to activity in futures markets that might not be explained by news events.
In this week’s episode of “Trader’s Workshop,” SpotGamma Founder Brent Kochuba discusses how he examines put and call volumes to determine price levels that futures traders might find interesting. He also explains why January’s expiration event is larger than normal, mainly due to long-term equity anticipation strategies (LEAPS), most of which expire in January.
Additional topics discussed in this free livestream:
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Comparing call and put volumes to determine which prices could have the most activity
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The impact of zero days to expiration (0DTE) options on futures prices
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How an imbalance in put/call volume can lead to a feedback loop
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What implied volatility ranges can tell traders
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How the beginning of 2024 is starting to look like the beginning of 2022
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